Managing the flow of incoming and outgoing goods is a process that requires a lot of strategic planning. Discover an ideal tool for this activity.
The acronym WMS (Warehouse Management System) is nothing more than the warehouse management system — and brings several benefits to the organization in which it operates.
Specialized business software controls the flow of inventory into and out of a company's distribution center (DC). It enables verification and control of product receipts, storage, and replenishment. At the same time, it completes cycle counts, allocates inventory to an order (to be picked), consolidates orders on a dock, and creates packing slips.
WMS within the company
Once installed, the WMS streamlines the entire flow of information and also provides the use of resources in the physical space of the warehouse. In this way, all supply chains are based on generating value for the warehouse.
Thus, it is established as the most mature, intelligent and widely known system, because it manages the flow of inventory, work tasks and orders from the receipt until shipment of the goods.
In addition, the WMS tool offers several functions that support the direct logistics and operational strategy of companies. It also offers support for areas that have the following characteristics in their way of operating:
-Organization of process flow;
-Planning and allocation of resources;
-Organization of order entry;
-Administration of the reception and reception of products;
-Receipt of goods;
-Inspection and quality control;
-Smart storage;
-Batch control and expiration dates (traceability);
-Transfers and resupplies;
-Order separation programming (picking);
-Checking and dispatching goods;
-Inventories.
Therefore, it is valid to consider that the WMS system performs tasks and processes that are difficult to perform manually.
Advantages that this tool offers
With the use of the WMS tool, processes become more agile, and the storage and shipping of goods become more efficient. This also helps with inventory control and logistics planning. In general, a Warehouse Management System helps save time and money.
Below, we list other benefits of WMS:
Productivity on the rise
WMS streamlines logistics processes, providing speed in locating and dispatching goods and informing the team about the exact location of these items. Resulting in much greater efficiency and productivity.
Full control of warehouse goods
To the barcode labels carry all the information for the movement of goods, which allows controlling the flow of stored products with greater efficiency and security, and this is exactly the procedure through which you gain total control of the goods from the WMS system.
Optimization of merchandise ordering activity
The WMS system provides the warehouse with the exact location of stocked items, which is essential in day-to-day operations. Especially when the company has more than one warehouse and cannot waste time locating a requested product.
Quality in product storage
It is essential for the routine of any warehouse to know about the available space and how to use it intelligently. This practice has the benefit of helping the company to operate assertively when it comes to stocking goods.
WMS system reports inform you of the items that sell best and, therefore, should never be out of stock. These items tend to take up more and more space in warehouses, thus ensuring the quality that is sought.
WMS Tool Concept
As we have seen previously, WMS is an acronym in English and stands for Warehouse Management System. Translated into Portuguese, we can conceptualize it as a Warehouse Management System, which optimizes the logistical activities of the storage area, such as inventory, layout, picking, between others.
Tasks that are almost impossible to perform manually can be performed with WMS in just a few moments. After all, we understand that warehouses are increasingly full of goods and manual work requires steps that, if performed on a daily basis, delay the entire production line. At this time, it is essential to look for tools that optimize the routine and use technology to help carry out tasks.
In addition, the WMS system allows you to generate reports to check items close to expiration, which are out of stock, and to create an ABC curve to allocate the highest turnover items closest to the shipping areas. It can also be integrated with other systems and provide useful information for areas such as sales, purchasing, production, finance, transportation, and others.
In other words, the concept of the tool is manage inventory, allowing the company to manage inventory “On Line” and see if a given product is moving within the DC, tracking the inventory in each of its movements.
Have lower costs within your company by using WMS
By using this tool, the company will have lower costs. However, it is necessary to be aware that integration of a WMS software requires care and must be carried out by qualified personnel to ensure a successful start-up.
For example, see if you can run the current system in parallel for a while. This is a good way to mitigate some of the risks of an implementation failure.
Failure to properly select and implement a WMS can have negative consequences. Broadly speaking, there are seven areas where a poorly-suited WMS can negatively impact a business:
-Loss of functionality;
-Loss of flexibility;
-Restricted growth;
-Excessive costs for the system;
-Excessive upgrade costs;
-Delayed implementation;
-Implementation failure.
Now, with the WMS system fully operational, rework rate tends to decrease considerably. This means that all services that were previously performed manually will be developed using this tool, ensuring precision and agility. These features are essential for those seeking success in carrying out their routine activities.
In the long term, the effectiveness presented will have an increasingly positive impact on the company's cash flow, generating:
-Greater productivity and credibility;
-Optimization of the location and shipping of goods;
-Organization and control of entries and exits.
Ways the WMS tool works
THE WMS system works instantly, passing on real-time data to inventory management, as well as to employees working directly in the warehouse. The program also speeds up order processing and helps resolve issues with returned goods.
The use of the WMS tool speeds up and makes storage and distribution more efficient. shipping of goods, in addition to helping with inventory control and logistics planning. Its impact is also seen in the picking processes (separating orders for shipping) and cross docking (reducing inventory) — which contributes to saving time and money.
Regarding shelf turnover, the system's accuracy comes from gathering information about the products. The software collects the barcode and uses local monitoring networks to generate data about each product.
After collecting this information, the system synchronizes and creates reports on the status of items in stock. An alternative to barcodes are RFID tags (Radio-Frequency Identification), which allow products to be identified remotely and can operate via mobile devices, such as tablets and smartphones connected to the internet.
Thus, the system works as an excellent assistant in one of the most complex and time-consuming tasks in a logistics warehouse: inventory, promoting a minimum error rate. Discover some of its other features:
-Transportation integration and management,
-Order management,
-Integration with ERP,
-Advanced receiving,
-Management reports,
-Reverse storage,
-Shipping and replenishment management,
-Manifestation of small plots,
-Picking management,
-Voice data capture,
-Inventory management.
Storage systems that this tool supports
WMS cooperates with the customer's ERP and other systems such as WCS (Warehouse Control System) and WES (Warehouse Execution System). To better understand the roles of the three systems:
ERP is the acronym for Enterprise Resource Planning and it is a integrated business management system that controls sectors of the company. Among them, Accounting, HR and Finance.
The WMS acts as the brain of the facility, indicating what needs to be done and communicating these instructions to everyone. This is the ideal tool for those looking to optimize task execution.
The WCS can be compared to the spinal cord: you cannot walk, run or be mobile without it. In practice, it controls the DC equipment, such as stacker cranes, conveyors, among others.
Unlike other warehouse systems, WCS are used to control machines and equipment used to move loads. They are also known as one of the most advanced technologies today, offering the possibility of monitoring the entire internal flow of materials within the warehouse. Thus, information collection and control are carried out in real time.
Furthermore, its main characteristic is the ability to process large amounts of data quickly and accurately, offering the company several advantages such as:
-Inventory control;
-Connection between system and equipment;
-Monitoring the flow of materials;
-Planning activities according to the demand for goods;
-Integration between suppliers, manufacturers and distribution centers.
WES is a combination of both systems. A little less intelligent than a WMS, but still provides some “brain power”.
Considered a very complete solution to align and automate all order fulfillment processes within the distribution center, WES is a modular, scalable and flexible platform that integrates seamlessly with your existing systems.
WMS gains even more prominence in an environment with good layout design. If you don't know where to start, see here how to receive a free project focused on your company's warehouse.
